Aircel likely to file for bankruptcy; RCom shares take a dive

NEW DELHI: Shares of Reliance Communications cracked over 7 per cent amid reports that RCom-Aircel merger could fall through as Aircel was reportedly readying to file for bankruptcy under the Insolvency & Bankruptcy code. Following the report, shares of several lenders to Aircel also came under pressure.

The report suggested that the merger was unlikely as Ericsson has moved NCLT against RCom. The SC has already banned Aircel from trading/sharing spectrum, it noted. SBI, PNB, Bank of Baroda, Canara Bank Syndicate Bank and J&K Bank are some of the lenders to Aircel.

Aircel's total debt stood at Rs 16,000 crore, which includes Rs 12,000 crore of India debt. The entire share capital of Aircel owned by Maxis Malaysia is pledged with a consortium of SBI-led banks.